Wall Street is trading with profits this Thursday after very strong climbs on Wednesday, which led the indices to all-time highs after the Donald Trump's victory in the US presidential elections. This, as the market focuses its attention on the meeting of rates of the Federal Reserve (Fed) and at the press conference of its president, Jerome Powell. «The 'Trump trade' went as planned. US stocks rose, banks and small caps led gains, the US dollar gained ground as US yields rose on expectations of further rise in national debt. Everything that has to do with green, alternative and clean energy has been lost,» says Ipek Ozkardeskaya, senior analyst at Swissquote Bank. Thus, and while awaiting final confirmation of whether the House of Representatives It will also be controlled by the Republicans, which may not arrive until Friday, in Federated Hermes, they highlight that «it is best for investors to stay in the market rather than making decisions based on partisan affiliation. That said, the outcome is likely to hit the best-performing sectors. As we have repeatedly noted, Trump's growth agenda – lower taxes, deregulation, increasing inward investment in the US through tariff negotiations – is a wind in favor of the old economy and supports the other forces that already favor these market sectors.
THE FED, THE OTHER GREAT PROTAGONIST
The other big event of the week has been Fed rate decision. The monetary body has decided to lower interest rates again, for the second consecutive meeting, although on this occasion it has opted for a 25 basis point cutup to the fork between the 4.50%-4.75%. In its statement, the US central bank explained that it has opted for this move in its search for achieve maximum employment and return inflation to the 2% target in the long term. For the Fed, recent indicators suggest that the economic activity has continued to expand to a solid rhythm. Furthermore, he stressed that, since the beginning of the year, labor market conditions have generally relaxed and the unemployment rate has increased, but remains low. As for the inflationhas highlighted his progress, but believes that «it is still somewhat high». Investors are also closely monitoring the Powell's wordshead of the organization, in search of any clue about the future central bank movesespecially after the triumph of Trump whose policies, according to analysts, can cause a inflation spike. In this regard, the president of the Fed has stated that «In the short term, elections will have no effect on our decisions». «We don't guess, we don't speculate and we don't assume.» In addition, Powell has insisted on the dependence on data and his 'meet together' approach stating that «for December, and at each meeting, we will be monitoring the data and its effects on forecasts. We are in a process of recalibrating from quite restrictive levels.» «Even with today's cut, policy remains restrictive.» «If the economy remains strong and inflation does not move sustainably towards 2%, we can reduce political moderation more slowly. If the labor market were to weaken unexpectedlyor inflation fell faster than expected, we can act faster«, he detailed. The macro agenda this Thursday also included notable references such as weekly unemployment datawhich have increased to 221,000 applications from 216,000 in the previous seven days. Friday will be the turn for University of Michigan consumer sentiment.
COMPANIES AND OTHER MARKETS
At the business level, Qualcomm rises 0.5% after some better than expected results and forecasts that exceed expectations. Also in the results chapter, Lyft flies 24% after surprising with its accounts and offering a guide for the fourth quarter that beats estimates. In other markets, oil West Texas earn 1.13% ($72.69) and the Brent rises 1.33% ($75.91). For his part, the euro 0.63% ($1.0796) is appreciated, and the ounce of gold earn 1% ($2,695). Furthermore, the 10-year American bond yield relaxes at 4.347% and the bitcoin advances 0.63% ($76,442).